Oil and gas activity within city limits continues

Kathleen ThurberMidland Reporter-Telegram

Published 1:30 pm, Tuesday, September 27, 2011

As oil and gas activity expands inside city limits, business and landowners work to strike a compromise.

Sometimes that's done through amenities to separate rigs from nearby neighborhoods and other times with the promise of landscaping when development does inch toward the rig. On Tuesday, the Midland City Council looked at six oil and gas related permits, and officials said they prefer those requests after mineral and surface owners have worked together.

"We especially appreciate you working together," Mayor Wes Perry said, speaking to a landowner and leaders from Bluestem Energy.

Public hearings were held for five requests from Bluestem Energy for drilling activity near Midland Drive and Mockingbird Lane. No one spoke in opposition. Bluestem now will wait the required 30 days before coming back before the council for a vote.

The company is requesting a variance from the fencing and landscaping requirements laid out in the city's oil and gas ordinance, but will add fencing and landscaping that's above the required standard, said Jack Hightower, chairman and CEO.

"We take our responsibility to develop these areas in a serious manner," he said.

Landowner Dusty Evans said the two have worked together and he's not concerned with landscaping at this point. When development gets closer to the rigs, Hightower said it will be put in place, according to their agreement.

Evans said the water needed for drilling will come from wells currently used for irrigating farm land.

A separate request from Midland Energy Inc. was granted Tuesday after the company worked with Mark Payne of Mark Payne Homes.

Jeff Sparks, councilman for District 1, worked with the two since the company's first request in July. Midland Energy seeks modifications to the fencing, gate and landscape requirements for a rig. Payne wanted to ensure the activity wouldn't negate his ability to sell homes in the neighborhood east of Lamesa Road and north of Loop 250.

The two parties agreed Payne will put in the appropriate landscaping when it can survive. Midland Energy will surround its rig with cedar fencing and construct an entrance with stone columns. Under the initial permit, an 8-foot masonry fence was required. The company requested a variance that would allow for a chain-link fence.

"I think we came up with something that will work good for everyone," Payne said.

Council members said it's ideal when both the land and mineral owners can work together but that has not always been the case.

Hightower said that while they were able to work with the landowner, he wishes the process was simpler. In other metropolitan areas, Hightower said rigs can be as close as 50 feet to a home; under Midland's rules they need to be at least 200 feet away.

With millions of dollars in oil underneath the Tall City, Hightower said the local government should be accommodating to the industry, even if that requires tweaks to the present ordinance.

"The oil and gas business can change overnight," he said, explaining why changes to codes might be needed.

In other business, the council:

- Approved on first reading a request from Magic Enterprises Inc. to sell rugs from a 4,000-square-foot tent in the Midland Park Mall parking lot between Saturday and Oct. 22. Scott Dufford voted against the proposal.

-- Voted 6-1 to change the zoning of a plot near North Lamesa Road and East Wadley Avenue. Geo Mitchell requested his property be changed from an office district to a local retail district so he could develop businesses or sell portions of the land. Several neighbors objected when the request was first brought earlier this summer because they don't want alcohol sales near their homes. Mitchell said he doesn't intend to allow a convenience store or liquor store on the land, though the local retail zone does allow for it.

-- Buffalo Wild Wings was approved on first reading for a specific use permit that will allow the business to sell alcohol seven nights per week and staff peace officers on the premises only Thursday through Sunday each week. Officers will be at the restaurant from 10 p.m. to 2 a.m. on those nights. The standard requirement is for officers on site from 9 p.m. to 2 a.m.

-- Approved a resolution to advertise for bids on the replacement of piping and equipment related to the city's water system. Bids also will be advertised for the rehabilitation of the shell elevated storage tank near Midland Memorial Hospital's West Campus.

-- Approved a zone change at Chick-fil-A that will allow for an additional drive-through lane and expanded kitchen.

-- Approved a zone change that will permit PetSmart to construct an adoption center to be run by the Midland Humane Coalition.